Hold Rating for SBA Communications Amid Strong Start and Modest Growth Outlook

SBA Communications (SBAC – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Hold rating on the stock and has a $240.00 price target.

Ari Klein has given his Hold rating due to a combination of factors influencing SBA Communications. The company had a strong start to the year, with better-than-expected AFFOps for the first quarter of 2025 and an increase in guidance. Despite this positive momentum, the outlook for organic growth remains unchanged, and while domestic carrier activity is on the rise, the anticipated growth in AFFO per share is expected to be modest through 2027.
Another factor contributing to the Hold rating is the improvement in U.S. carrier activity, with applications reaching their highest level in years. This indicates a potential increase in leasing activity, although there is some caution regarding the sustainability of increased activity from certain carriers like TMUS. Additionally, the return of share repurchases offers some flexibility in capital returns, but overall, the subdued growth expectations for AFFO/share temper the otherwise positive developments.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SBAC in relation to earlier this year.